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A Cuts Only Approach without Raising Revenue Doesn't Work

Posted By Alexandra Sirota On January 7, 2011 @ 4:10 pm In Uncategorized | Comments Disabled

Paul Krugman published a piece today entitled The Texas Omen [1] that demonstrates the failure of modern conservative theories about budgeting. The theory that never raising taxes under any circumstances and just cutting spending  can fix budget shortfalls and support economic recovery is not working.  Texas, the state where this has been implemented most consistently, is now facing one of the worst budget gaps [2] in the country and its ability to educate and train its future workforce has been undermined.

The entire piece is worth a read but one important point is the need in many states, North Carolina included, for policymakers to be sound fiscal managers and recognize the structural problems in state revenue systems that need to be addressed.


Article printed from The Progressive Pulse: http://pulse.ncpolicywatch.org

URL to article: http://pulse.ncpolicywatch.org/2011/01/07/a-cuts-only-approach-without-raising-revenue-doesnt-work/

URLs in this post:

[1] The Texas Omen: http://www.nytimes.com/2011/01/07/opinion/07krugman.html

[2] worst budget gaps: http://www.cbpp.org/research/index.cfm?fa=topic&id=120

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